History is generally a good guide when trying to make sense of
the present or predict the future.
Not so with LatinFinance’s quarter
century capital markets league tables. Recent years offer a
much better indication of overall leaders for the entire
The reason is obvious: rapid expansion of Latin
America’s capital markets, and therefore of
transaction volume, has taken place in the past decade, so the
tables are necessarily heavily weighted towards recent
This is especially true of debt capital markets, where low
rates and unprecedented global liquidity have in recent years
sent investors looking for yield in Latin markets. It also
applies to equity capital markets, where the markets have more
recently opened up, in spurts, to a wide variety of new
The volumes in the tables are grouped so that currently
existing banks receive credit for deals done by shops they have
acquired, or from which they were re-branded. The tables bring
together data from Dealogic, which has been keeping score since
the early 1990s, as well as the a wealth of information from
Securities Data Co and Capital Data, as stored in early
editions of LatinFinance.
US shops lead debt
Two US shops top the bond tables for cross-border issuance,
thanks to a surge in issuance in recent years.
JPMorgan, and the component banks that contribute to
today’s entity, boasts $175 billion from 638 bond
deals – nearly 16% of the volume. It leads in most of
the highest volume countries: Argentina, Brazil, Chile,
Colombia, and Mexico.
Citi comes second, having worked on $120 billion worth of
debt issues over the years. Among JPMorgan and
Citi’s deals’ tally sit several
trades for the largest sovereigns, quasi-sovereigns and
blue-chip corporates, topping a billion dollars. Both banks
also boast extensive experience on smaller deals, covering an
expanding variety of sectors and countries. Deutsche Bank joins
in the $100 billion-plus club, with Bank of America Merrill
Lynch and Credit Suisse rounding out the top five. Brazil
accounts for the most volume in the region, with $357 billion,
followed by Mexico with $297 billion. Oil producers have sold
the largest single deals. Petrobras’ $11 billion
six-tranche offer in May of this year is the
region’s largest of the quarter century. It is
followed by PDVSA’s $7.5 billion sale in 2007, and
Petrobras’ $7 billion jumbo sold in 2012.
Mexico’s $6 billion bond sale in 1996 tops the
sovereign charts, while América
Móvil’s $4 billion deal in 2010 is the
region’s pure-corporate champ.
Peaks and troughs
Equity sales have been characterized by fits of heavy
deal-making and long silent periods when markets have turned
sour. The volatile environment has pushed banks out of the game
– and encouraged others in – over the years.
Credit Suisse sits at the top of the tables thanks to its
consistency and willingness to stick it out in various
countries. It claims $49 billion from 208 deals, or close to
13% of the market share over the quarter century.
Demonstrating just how heavily Brazil dominates the market
– particularly in recent years – CS is
followed by BTG Pactual, with $37 billion and Itaú, with
$34 billion. The Swiss bank still leads when only Brazilian
deals are included, again followed by Itaú and BTG.
The top three have built up volumes by working on some of
the largest deals through the years. These include the $70
billion Petrobras follow-on in 2010 – the
region’s largest ever, even if only the roughly
$20 billion market-oriented portion is counted –
Vale’s $12 billion follow-on in 2008, and
Santander Brasil’s $7.5 billion 2009 IPO.
Citi leads bookrunners in Mexico, and Latin America outside
Brazil. BTG Pactual – which has recently acquired
local house Celfin – leads in Chile.
JPM, Citi also top M&A
JPMorgan also leads the rankings for mergers and
acquisitions, with $404 billion in deals involving a LatAm
acquirer or target. AB InBev’s $20 billion
purchase of the half of Mexico’s Grupo Modelo it
did not own in July 2013 pushed JPMorgan ahead of Citi.
Both US shops worked on Cemex’s $16.7 billion
acquisition of Rinker, announced in 2006. Citi’s
resumé includes its own purchase of Banamex for $12.6
billion in 2001, as well as a $16.8 billion YPF-Repsol tie-up
in 1999. JPMorgan also boasts the 2008 BM&F merger with
Bovespa in 2008, for $9 billion.
The region’s largest deal was the intra-company
maneuver of Telmex into América Móvil in 2010,
worth $24 billion. The AB InBev transaction comes in as the
largest intercompany deal, surpassing Vale’s 2006
move for Inco at $18.7bn. LF